Arizona is one of nine states to propose an increase in insurence rates

Arizona is one of nine states to propose an increase in insurence rates

CREATED Mar. 24, 2012

Web Producer: Samantha Esquivel

PHOENIX, Ariz. (AP) - The Department of Health and Human Services has identified Arizona as one of nine states where insurance companies are proposing rate hikes that the agency says are "unreasonable."

The agency's review of rate increases is one of the provisions of the 2010 federal health care overhaul.

The review said a 17 percent increase by Arizona John Alden Life Insurance Co., a division of Assurant Health, was unreasonable.

The HHS says the rate increase is unreasonable because the insurance company would be spending a fraction of premium dollars on "actual medical care and quality improvements," and justification  for the rate is based on "unreasonable assumptions."

The company says, "the rate is reasonable and necessary."
   
Both Arizona and the federal government  have reviewed insurance rates but neither has the authority to reject them.

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